Housing Debt

Oct 10, 2013 (LBO) – RAM Ratings Lanka has rate a planned two billion rupee listed secured debt sale by HDFC Bank, a mortgage lender ‘BBB’. The bank itself is also rated ‘BBB’.

RAM said the ratings are backed by majority state ownership of HDFC.

The full statement is reproduced below:-

RAM Ratings Lanka assigns BBB to HDFC’s proposed LKR 2 billion
listed, secured, redeemable debenture; reaffirms entity ratings

RAM Ratings Lanka has reaffirmed the respective long- and short-term financial
institution ratings of BBB and P3 to the Housing Development Finance Corporation
Bank (HDFC or the Bank); the long-term rating carries a stable outlook.

Concurrently long-term issue ratings of BBB have been assigned to the proposed LKR
2 billion listed, secured, redeemable debenture (2013/2018). The ratings are upheld
by the majority state ownership and the ongoing support derived from the
government of Sri Lanka (GOSL) as well as its good capital cushioning. On the other
hand, the ratings are tempered by HDFC’s below-average asset quality and performance as well as its small stature.